Millions of pensioners across the UK could soon see their incomes rise by up to £500 a year, as the government weighs up changes to state pension rules.
Under current legislation, pensioners who deferred claiming their state pension before April 2016 receive a higher weekly amount. However, those who deferred after this date earn extra state pension at a much lower rate.
What’s Changing?
The government is now considering aligning the rules for all pensioners, which could result in a significant boost for those who deferred post-2016. This move would see them receive the same higher rate as their pre-2016 counterparts.
Experts estimate that this change could add between £300 and £500 annually to pensioners’ incomes, providing much-needed relief amid rising living costs.
Why Now?
The potential overhaul comes as pressure mounts on ministers to address pension inequality. Campaigners argue that the current two-tier system is unfair, leaving many pensioners at a financial disadvantage.
A Treasury source said: "We’re aware of the disparity and are actively reviewing options to ensure fairness for all pensioners."
Who Stands to Benefit?
Around 1.5 million pensioners could be in line for the boost if the changes go ahead. Those affected would be automatically enrolled in the new scheme, with no need to apply.
Pension experts have welcomed the proposal. Jane Smith, a retirement specialist, said: "This would be a game-changer for many retirees struggling with inflation. It’s a long-overdue correction."
While no final decision has been made, insiders suggest an announcement could come as early as next month.
